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On May 1, 2018, Tony Lama Boots sells boots to Starr Western Wear in exchange for a six-month, S750,000 noninterest-bearing note with a 7%

On May 1, 2018, Tony Lama Boots sells boots to Starr Western Wear in exchange for a six-month, S750,000 noninterest-bearing note with a 7% discount rate. When Tony Lama records the May 1st sale in its books, for what amount will it credit the discount on note receivable account? A. $750,000 B. $15,000 C. S723,750 D. $356,395 E. $26,250

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